What type of analysis focuses on how activities provide value to customers?

Value chain analysis is a strategic tool used to understand how various activities within an organization contribute to the value delivered to customers. It systematically examines each step in the process of delivering goods or services, from conception and design through production, marketing, and distribution, to identify areas where value can be added or costs can be reduced.

This analysis helps organizations pinpoint which activities are most impactful in creating value for customers, thereby allowing them to enhance efficiency and competitiveness. By emphasizing the relationship between activities and customer value, value chain analysis aids in identifying opportunities for improvement, innovation, and strategic positioning in the marketplace.

In contrast, financial analysis primarily focuses on assessing a company's financial health and performance, without necessarily linking activities to customer value. Quantitative analysis deals with numerical data and statistical methods to evaluate performance, while qualitative analysis involves non-numerical assessments that may not specifically highlight how activities contribute to customer value. Thus, value chain analysis is distinct and provides a clear focus on the interplay between activities and customer value.